Steelmaker Nucor drops after Q2 miss, soft outlook

Cleveland-Cliffs

29/07/2025 16:59

** Shares of steelmaker Nucor NUE.N down 5.7% to $136.32 on Tues after its qtrly profit fell as rising material costs weighed

** NUE shares on course for biggest one-day pct decline since Jun 11

** Charlotte, North Carolina-based firm late Mon posted Q2 EPS of $2.60, down from $2.68 a year ago, and below Wall Street's expectations of $2.66, per LSEG data

** Rev in qtr rose nearly 5% y/y to $8.46 bln, though missed the $8.53 bln estimate modeled by analysts

** Co said it expects current qtr earnings to be slightly lower than Q2, citing decreased earnings in the steel mills segment and similar results in the steel products and raw materials segments

    ** In the steel mills segment, co said despite resilient backlogs and stable demand outlook, it anticipates margin compression in Q3 vs Q2

** Shares of some rivals also drop on Tues: Cleveland-Cliffs CLF.N 6% and Steel Dynamics STLD.O ~2%

** Even with move on the session, NUE shares up ~17% YTD compared to ~19% gain in the S&P 1500 Steel index .SPCOMSTEEL

** Of 16 analysts covering NUE, recommendation breakdown is 11 "strong buy" or "buy" and 5 "hold"; median PT is $149.50 - LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))